Indian Americans Quietly Took Over America's Motel Industry
By Kelli Luu | 16 Jun, 2026

One community of Indian American entrepreneurs found success in an unlikely place and now, Gujarati immigrants own over 60% of America’s motels.

Did you know Indian Americans own more than 60% of all motels in the United States and they only make up 1% of the country’s population? What’s even more interesting is that roughly 70% of them share the surname Patel and around 42% trace their roots back to the Indian state of Gujarat. 

The very first Gujarati to enter California’s hospitality industry was Manchhu Desai. He and two other Gujarati farmworkers partnered up in 1942 to take over a 32 room hotel in Sacramento after its Japanese American owner was forced to report to a World War II internment camp. Desai later moved to the Hotel Goldfield in San Francisco, opened its doors to Gujarati immigrants, and encouraged them to get into the hospitality business as well, developing the saying “If you are a Patel, lease a hotel”. 

After the Immigration and Nationality Act of 1965 opened up doors for Asian immigrants, many Gujaratis came to the United States looking for opportunity. Instead they faced many obstacles while trying to enter traditional work industries and had to lean towards something different. 

During the 1970s and 1980s, a large number of motels were being sold and larger investors had little interest in buying them, but Indian immigrant families saw them as an affordable business that also provided them with a place to live. It was also easy to keep labor costs low as parents often cleaned rooms and took care of maintenance while children helped at the front desk after school. 

As families succeeded, they helped their friends get into the hotel industry as well, sharing their knowledge and even helping with financing. New immigrants were learning directly from someone who had already experienced the challenges of the business and over time, these networks created a cycle of entrepreneurship, laying a foundation for the next generation. By the 1990s, many families expanded far beyond operating a single roadside motel. Some purchased multiple other properties and others invested in larger hotels under well known brands like Holiday Inn and Marriott. 

Most of the time Indian Americans are associated with careers in tech, but their impact on the hospitality industry is just as significant. What began as just a few immigrants taking risks on overlooked motels turned into a full business empire that represents generations of hard work and community support.